teleconferencia apresentacao 1 t07 eng
DESCRIPTION
TRANSCRIPT
1Q07 RESULTSTeleconference
May 10, 2007
2
Safe Harbor - Disclaimers
This presentation contains statements that are forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are only predictions and are not guarantees of future performance. Investors are cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of CCDI and its subsidiaries that may cause the actual results of the companies to be materially different from any future results expressed or implied in such forward-looking statements.
Although CCDI believes that the expectations and assumptions reflected in the forward-looking statements are reasonable based on information currently available to CCDI’s management, CCDI cannot guarantee future results or events. CCDI expressly disclaims a duty to update any of the forward-looking statements.
3
INITIAL PUBLIC OFFERING
Date: January 31, 2007
Primary and Secondary Offering
Share Price: R$ 14.50
Deal Volume: R$ 522 million
Net Proceedings: R$ 478.5 million
Closing Date: February 22, 2007
4
Sector Perspectives
Economic stability maintained; macro sector very favorable
Real Estate Credit Expansion fuels sales
Longer Terms
Decreased interest taxes
New segments/classes being contemplated
New legal framework
Huge pent-up demand
HOWEVER, 1Q07 was characterized by few new real estate launchings
5
Operational Performance - Launchings
Second Launching in the Península de São Lourenço
Condomínio Cassis
Bertioga (SP)
Total usable area (m2): 16,527
Units: 71
VGV: R$ 71.0 million
100% CCDI
6
Operational Performance - Launchings
33.0
71.4
1Q06 1Q07
VGV LAUNCHED (R$ million)
+116%
UNITS LAUNCHED
80
71
1Q06 1Q07
-11%
7
Operational Performance – Units for sale
500 500 407 407
71 164
2006 LAUNCHINGS UNITS SOLD 1Q07
UNITS FOR SALE
114 148
370
241
1816
2006 1T07
Delivered Units Units under Construction Pre-Construction Units
UNITS FOR SALE
8
171.3
87.3
2006 1Q07
CONTRACTED SALES(R$ million)
51%
92
164
1Q06 1Q07
UNITS SOLD
+78%
3,260.5
3,295.7
2006 1Q07
AVERAGE SALES PRICE(R$/m2)
+1%
Operational Performance – Contracted Sales
29.1
87.3
1Q06 1Q07
CONTRACTED SALES(R$ million)
+200%
9
Selective Acquisition of new areas
Strategy: to seek for swaps to maximize capital utilization
New cities, new segments
Operational Performance – Land Acquisition
Land Name m2 Place
Potential
VGV
(R$ milion)
Swap
Type
Swap
Percentage (1)
Segment
(2)
Vila Rica 1,389 Santos (SP) 30 --- 0% Medium
Q155 8,855 Jardim Sul 43 Financial 100% Medium
Morumbi 10,098 São Paulo 38 Financial 88% Luxury
Aldeia da
Serra
752,927 Aldeia da
Serra (SP)
120 Financial 100% Mid-Low
Pinheiros 3,920 São Paulo 33 Financial 50% High
Ponta da Praia 6,209 Santos (SP) 25 Physical 88% Mid-High
Enseada 21,104 Guarujá (SP) 78 --- 0% Luxury
Total 804,502 367 Average: 85%
10
Financial Performance: Gross Income
7.8
24.4
46.1
1Q05 1Q06 1Q07
CAGR: +144%
GROSS REVENUES (R$ million)
1.4
4.9
9.9
1Q05 1Q06 1Q07
GROSS INCOME (R$ million)
CAGR: +162%
19.521.2
22.4
1Q05 1Q06 1Q07
GROSS MARGIN (%)
+2,9 p.p.
11
Financial Performance: Revenues and Results to be recognized
173.6
244.9
1Q06 1Q07
REVENUES TO BE RECOGNIZED(R$ million)
+41%.
42.5
60.1
1Q06 1Q07
RESULTS TO BE RECOGNIZED(R$ million)
+41%.
24.5 24.5 24.8 24.5
1Q06 1Q07 4Q06 1Q07
MARGINS TO BE RECOGNIZED (%)
12
Margin Analysis
Net Revenue $100
Construction Works & Others $46
Land $15
Gross Profit $32
Gross Margin 32%
CCDI Typical Development
Net Revenue $88
Construction Works & Others $ 46
Gross Profit $42
Gross Margin 48%
16 percentage points of margin difference
Other Players
Construction Margin $ 4
VGV $103 VGV $103
Broker Fees $ 3 Broker Fees $ 0
Financing Cost $ 3 Financing Cost $ 0
Construction Margin $ 0
Land $ 0
A typical CCDI residential development
Land $ 0 Land $ 15
13
Recognition, in the quarter, of R$ 26.2 million in non-recurring, IPO-related expenses.
SG&A growing because of theforecasted operational expansion ofthe Company for 2007 and 2008.
Financial Performance: EBITDA and Income
-0.6
2.8
2.1
1Q05 1Q06 1Q07
EBITDA (R$ million)
(1.1)
2.2
(12.9)
1Q05 1Q06 1Q07
NET INCOME (R$ million)
FOLLOWING THE GROWTH PATH
15
Principais Diferenciais Competitivos
Pure Real EstatePlayer
CapitalOptimization
DeveloperFocus
Margins from construction not consolidated in the Company’s Balance Sheet
(-) Smaller Gross Margin
(+) Maximum Guaranteed Price
No internal brokerage structure
(-) Gross Revenues are net of brokerage commissions
(+) Agility, Flexibility and networking
Project Leverage
(-) Smaller Gross Margins
(+) Increased return on the project
Real estate financing/securitization of receivables
No post-delivery credit risk
Commercial developments will be sold after leasing
It is not our business to keep the property for leasing purposes
Focus on higher value-added activities
Maximum capital utilization
Differentiated margins
16
LAND BANK
R$ 5.5 billion potential VGV potencial (100% CCDI)
2.4 millio sqm for future developments
~90% acquired via financial swaps
On-going negotiations: R$ 4 billion in potential VGV (success rate estimate at approximately 50%)
3.6
0.9
0.20.4
0.20.2
RMSP SP - Inner Cities
and Shoreline
Rio de Janeiro
Residential Commercial Lots
LANDBANK – POTENTIAL VGVType of Development - (R$ billion) – 100% CCDI
0,69
1,18
0,970,86
0,70
100 to 200 200 to 350 350 to 500 500 to 1000 over 1000
LANDBANK – POTENTIAL VGVResidential in R$ 000 per unit - (R$ billion) – 100% CCDI
16% 27% 22% 20% 16%
17
Lançamentos Futuros
Land Bank fully in-house
Planned, scheduled in phases launchings , with close management of offer/demand
for every project
Anticipated product development, marketing (media and research) and approval
and permits works
1.41.4
1.7
1.0
2007 2008 2009 2010 and later
LANDBANK – POTENTIAL VGVLaunchings - (R$ billion) – 100% CCDI – Accumulated
18
Investment Case
CCDI is the fastest growing and most agile company in the sector
Brand Recognition
Land Bank
Experienced Management
No Construction Risk
Financial Efficiency
Agility